Charlty Reglstratlon No. 11B1077 THE IMPACT FACILITY ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Yshawgibbs
THE IMPACT FACILITY LEGAL AND ADMINISTRATIVE INFORMATION Trustees DrA Carter PHO Mr S Lowe Ms B Visser MSSHO (Appointed 15 February 20231 (Appointed 1 June 20231 Charlty number 1181077 PrlncSpal address Avening Park West End Telbury Gloucestershire GL8 8NE Audltor Shaw Gibbs (Audit) Limrt¢d 264 Banbury Road Oxford OX2 7DY Bankèrs Lloyds Bank 1&14 Commarket Thame Oxon OX9 28N
THE IMPACT FACILITY CONTENTS Pagè Trustees, report Independent audito¢s report 12-14 Consolid8ted ststemenl of financial activities 15 Charity statement ol finan¢ial adivili&$ 16 Consolid¥leJ balan¢& $he&l 17 Charity balance sheet 18 Consolidated statement of cash Ilows 19 Charity statement of $h flows 20 Notes lo the finan¢ial statement 21-38
THE IMPACT FACILITY TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees present their annual report and financjal ststements for the year ended 31 Dember 2023. The financi81 st8temenls have been prepared in ardancE the accounting poliryes set out in note to the financial 5tateTnents and compty with the charty's trust deed, the Charibes Act 2011 and 'Accounting and Reporting by Charities. Statement ol Recommended Practice applicAble to charities prepanng their accounts in accordance with the Finanual Reporting Standard applicable in the UK and Republic ol Ireland IFRS 1021 leffeth.ve 1 January 20191.. Objectives and activitle• The Impact Facility exists for the public benefrt regarding.. 1. The prornotion of sustainable development for the benefft of communit3 and landscape5 surrounding mining cornmun((ie5 in developing nations and count6 in transrtion. The lfflpact Farylity wll contribute through.. al the preservation, conseNatson and the proteth.on of the environ1 and the prudent use of natural resour¢es, with a particular locus on mined resources. bl the relief of povety and the improvement of the ojnditions of life in SOCAaUy and economicalty disadvantaged mining cornrnunilies. in developing na'OnS and transitioning countries. ¢1 the enabling ol susloinable means ol achi1n9 e¢onomi¢ growth and fegeneration. In thls context sustainable development is defined as. -development vknich meets the needs of the wesent without compromising the ability of future g8ner8tions to meet their own needs". The Trustees have paid due regard to guidance issued by the Ch8rity Commission in deoding what aclivities the charity should undertake. For more information on the CIO See secb'on 5. Aehl•vom•nts and pèrfomian¢o Key achievernenls ol The Irnpact Facility have revolved around tyvo core initialives.. The Fair Cobalt Alliance IFCAI and programmes implemenied to improv& gokl mining ¢ommunib"e$ in th¢ Lak¢ Vi¢torio region, kn¢wn 8$ th¥ Lak& Victoria 2030 Programmè. The Falr Cobatt Alliance The Impact Facility is a co-founding member of the Fair Ci)bah Alliance IFCAI and serves as the pemianent secrelariat of the rnultl-St8keholder alliance eslablished in Au9USt 2020 to 8ddre5s complex development81 i53ues in rt1san81 wb8lt production communities in the DRC. starting Vrith the K8mi1gmbe mine in the Kap818 Community of Kolwezi, Lualaba province. The Alliance was founded by Fairphone, Signrfy, Glencore and The Impact Faality and has a total of 19 members, across the global cobah suppty chain. The strategic areas that the Alliance locuses on a clusiered around the followng workstreams.. Safe and fair working conditions.. To improve workers. heahh and safety as well as trade transparency and their tems of payment, we support th8 provision of adequate personal protective equipment IPPEI, worker tr8ining, and transparènt and fair buying practices at the trading stsb"ons. Child labour remediation and prevention.. The Alliance is working wrth local co-operatives and civil society to build a scalable child labour remediation and prevenlion system. Taking a child rights approach. we seek to promote school attendance and vocational training and job opportunities for youth. Economic resilience". We invest in communrty programmes around the mine sites, designed to create and diversify sustainable livelihoods and accessible to all communrty members. Widespread poverty can onty be addressed ty fostering entrepreneurship and creabng job opportunities in Ihe community- outside the artisanal mining sector.
THE IMPACT FACILITY TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Value Chain Parbcipation.. Any organisalion operating as part of - or associated with - the global cobatt supply chain should consider how it might best contribute to solutions to the challenges involved in artlsanal cobalt production. By taking a holistic approach. incorpor8ting every 5t8ge ol the suppty chain. we can identify root causes 8nd construct effective solubons to addiess issues. Governance The Impact Facility manages the Fair Cobalt Aliance as a slanthalone initiative and ensures that all funding is allocated to projects approved and accounted for by the FCA Sleering Committee. In 2023. the Members ol the Steering Committee included representsbves from the Centre Amjpe pour la Recherche et la Formaty'on ICARFI. The Genlre for Child Rights and Business. Tesla. Glencore. LG Energy Solution and Fairphone. The Steering Committee meets once every six weeks to prO¥e strategic oversighl of the work of the FCA. Advisory Board.. Launched in April 2022. Ihe Advisory Board consists of 14 thir&party advisors with relevant experien in the sector selected by Ihe Secretariat in consul1alTr wlh the Steering Committee. The Advisory Board's role is to provide non-binding advice to the secln8t. The Board met fvice in 2023. to provide input and perspective to the shaping of the FCA'S strategic direction. first in June and Ihe second time in November. 2023 new member Gore Street Capital. an experienced renewable energy and private equty investment manager based in the United Kingdom, joined the Fair Cobah Alliance in 2023. The Fair Cobalt Alliance work and achievements in 2023 Working with 8 budget of USD 1.85 million in 2023 raised through merrtjership contributions and seed funding from the Oulch government, the FCA was able lo implem&nt a number of on-the-ground inlervenlions in 2023 a¢ro$$ variou$ workstreams, lar9ety ¢alegofise¢J into a¢hievin9 langible Impact on mining mMunitIeS and creating an enabling environm8nt. Achieving tangible impact on mining communities Sever81 workstrts8m$ exist under this tsver-ar¢hing theme focus on making improvèments to support th artisanal mining communty in the Kap818 Communty. the aa surrounding the Kamilombe mine sile wh?ro the Fair Cobalt Alliance has an agreement wrth the cooperative organisalion Coopèrative Minière pour le Développement Social ICMDSI to facilitate sale and dignffied working condrtions.. Legalisalion Support.. To lacilitste more tsrgeted. slwctural investmenl inlo the artisanal mine site Kamilombe. it is critical to fomialize the rnine sile. To support Ihe goal of legal operation5. the Alliance allocated 8 Significant arnounl of resources lo support the CMDS in rts efforts to athieve lull legal compliance in awrdance with relevant local and national regulations, with the hope to be able lo develop g leg81i541ion pro¢e$$ th¥1 Uld setve 8$ a blueprint ft)I legitimate artisanal mine operators to follow. Following a tender process, the Alliance and CMDS contracied RMAC Global and Cabinet Mbuyu, to aid the legalisalion process for Kamilombe. Legal and mining experfs. the selected consullants were able lo help CMDS navigate the complexilies of the legal process and me(Jiale discussion wth Karnilombe's concession holder Ge¢8mines. To identify the rnosl sUlt8ble path lorward lor CMDS. the consuliants eng89ed in extensive dialogue with a wide range of stakeholders, including cNil stsuety repSentatiVes, cooperatives, provincial and national govemment officials, Entrepnse Gènèrale du Cobak IEGCI and industrial actors, to figure out a way forward. The outcome of these consurtations yielded potential legalisabon solutsjns for Kamilombe.. Amodialion or Lease. Through research and discussion5 wilh the Mining Cadaslre. a technical avenue emerged. The Mining Code 8llows for ASM oooperatives lo operate under a $rnalsca1e mining exploitation permit IPEPM in Fienchl if endorsed by the perrnrt holder. Additionally. holdets of industrial explortation permits IPE in French) can convert portions of their pem)Its into PEPMS, contingent upon feasibilty studies and environmental and soaal impact assessments conducted by accredrted consuKants. This option, confimied by the Mining Registry ICAMII, offers a viable path foard, atthough rt necessitates agreement from the pemirt holder Gecamines. Ministerial Agreement.. The second option inVoe$ a longer process. enlailing a Governmental Decree. This decree would ernpower the Minister of Mines to aulhorise the establishrnent of atbsanal cobalt rnining zone5 IZEA- Zone d'Exploitats"on Attisanalel wrthin existing concessK)ns. While this opb.on provides more enduring security ft)I minets, the procedural timeline remains indefinrte.
THE IMPACT FACILITY TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 This signifies a crucial step towards fomialising mining operations al Kamilombe. ensuring legality. and fostering sustainable practices that benefit all stakeholders invoed_ Using the insights from the legal advice provided by RMAC and Cabinet Mbuyu, ihe FCA will continue to 5UPPOrt CMDS in their leg81is8tion efforts, advocating for the fomali53tion of mining actNitie5 at Karnilombe. By fostering continued collaboration and consensus-buildiTig among stakeholders, we are hopelul in our ability to advance towafds Ihe legalisation of Kamilombe in a manner that is equitable, transparent, and beneficial for all stakeholders. Enabling safe and dignified working condrtions.. Working in close collaboration with CMDS, the Fair Cobatt Alliance was 8ble to facilitate several in¢ervenbons. many ol whith had been infOed by the expert feedb8ck from the Occup81ion81 He8lh and Safety IOHSI Committee comprising representatives trom neighbouring industri81 miner Kamoto Copper Company IKCCI and Service d'Assistance et d'Encadrement de I'Exploitation Minière Artisanale et a Petite Échelle ISAEMAPEI, the govemment agency tasked with regulating and overseeing artisanal mining activities. To socialise a cuhure ol safety at the mine srte, the Alliance,. Facilitated 22 weekty toolbox trainings for underground workers. led by a group of 100 Safety Captains trained by the FCA. training approximatety 400 miners per week, covering tOPi¢5 such as the dangers of dust, rainwater management, insulations and w01n9 wilh dedriuty, f8tigu& management. and Safe manual hauling ol ore. Erected 10 safety billboards and 11 banners auoss the mine site with key operations hearth and safety IOHSI messaging. Organised the quartety theatrical shows to raise awareness and educate the Kamilombe mining communty on OHS. Broadcasted 60 jingles safety rnessaging via r8dio 8nd lele¥ision across dfflerenl stats'ons in Lualaba province. In addition to th8 OHS c8mpal9n, the FCA èxecuted a number of physkal intervenlK)ns deslgne(J to hcrease wot*8r safety. including.. Provided corrugated iron sheets needed to roof 150 mine tunnel openings 8t Kamilombe lo enhance rainwater rnanagemenl and prevent Ilooding. By the end of 2023. the first 4 lunnels had successfulty been rooled. Supplied personal protectiv6 equipment IPPEI to cooperative members, women washers, depot workers and site cleaning agents. More speufically.. 217 washers enjoy access lo appropriale PPE. I through rental facAlity. 117 bought their boots. 205 members of CMDS have each ceiVed a pair ol safety boots. 17 Site cleaners have received a pair ol wbber boot5 each and fft pairs ol PVC gloves for use. 846 pairs of leather gloves. 846 glasses and 2.115 pairs of n95e muffs have been donated by the FCA to the depot workers at Karnilombe. Provided 50 trash bins across the mine srte to maintain site deanliness. Provided a card printer to CMDS to enable the resumplion of issuing identity cards lo the diggers, women washers and traders under the cooperats"ve. Child labovr remediation ICLRI.. A new inrtialive caled Ihe'The Hub for Child Labour Reme(Jiation' lor'The Hub, for shortl was succe55fulty launched in 2023 by the Fair Cobatt Aliance and rnan8ged ty Allian member The Centre for Children's Rights and Business and supported by Save Ihe Childn Germany. The Hub brings together local organisations with an Inte$1 and expertise on child safety and protecbon to build a coherent strategy and suite of services to prevent child labour and to remediate children already working, back into education and, if possible, a lamity environrnenl. The Hub w8S 8ble to meet ils 2023 9081 of supporting 20 thildren and is now focused on sc81ing its intervents'ons through fundiaising to support rnore children in the wrnfflunty- More infoall0n about the Hub is 8v8il8ble 8t.. htt .Ilwww.clrhub.or Raising workers, incomes.. Working in dose collaboration wtth the local partner Aftematives for Action IAFAI, the second phase of the Village Savings and Loans Assoryations sLA$> project started. a continuation cl the first phase efforts that began in 2022. where 14 groups were created. In 2023 the following resuts We achieved..
THE IMPACT FACILITY TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Ten new groups were created. bringing the total number of active groups in 2023 to 21. who collects'vely held 605 savings meetings during the year. The groups saved $35.000 in savings and mobilried $2.257 as solidarity funds which supported the creation of 120 new micrTrenterprise5 and gr8nts $36.600 85 loan5 to members. for activities including incorne generation activities, education, heafth and agriculture. Training was piovided to group members on entrepreneurship, financial education, conllict management and leadership and group dynamics. Achieving market acceptance of fair artisanal cobalt.. Recognising ihat perceptions in the cobalt suppty chain about artisanally mined minerals are poor, the Fair Coball Alliance has embarked on a mission to reverse this and facilitate market acceptance of responsibty mined minerals. To achieve this. the Alliance. with the help of sonE of our mernbers, has developed and launched 8 Responsible Cobalt Credit IRCCI Mechanisrn. Designed in collaborabon wth Ihe FCA'S Suppty Chain Integration task force comprising eight members Fairphone, Google, LG Energy Solutions. Shift Phone. Signify. IXM Metals. Ansvaddea and Sushi Bikes - the Responsible Cobalt Credits Mechanism was inNiated in Augusl 2023 at the same time as the launch of the Fairphone 5. the latest product from Ihe Dulch electronics company and a Co-Founding mernber of the FCA. F8irphone has purchased credits worth slightty 8bove $12.000 for around 2.5 tonnes of cobalt from the rnine site for the pilot. The responsible coball credrts is a 'book and daim. based credrt system that allows ¢Jownstream companies to financially contribute lo improvements at artisanal mine srtes committed to professionalising their operations enabling and incenlivising the sponsible produc¢ion of artisanal coball through joint work. To purchase a credit. downstream actors pay a premium of $5.000 per tonne of cobatt. equivalent to 10% of the commodity's average price over the past trree years. lor cobatt produced al the Kamilombe artisanal rnine site and sold to 8 trader or proce$$ing Slte. A ¢redit within this system serves as proof that a certain amount of batt has be¢n produ¢¥d and sold with a ¢srtain level of Environmental, So¢ial, and Goveman¢e IESGI p&rfoman¢e. The funds generated from the sale of Ihe credits are managed by The Impact Faality. wrth a dedicated Fund Allocation Comrniltee IFACI that includes Ihe FCA. CMDS, and Ihe Women Washer's Association, overseeing the articulation and priorilisation of lunds for mine developmenl. The four minfrsrte priority areas are listed here., 11 Good governance, 21 Safe and dignified working ndIllOnS. 31 Environmenial proteclion. and 41 Inclusive economic development. The FCA local team put a cobart tracking system in place to understand the production ¥olumes from the pilot ten tunnels lout of the more than 250 tunnels al the site). going through ore washing and lo the depots. The Impact Facility will report on incoming and oulgoing funds lo both the cooperatives and Ihe companies that contribute lo the credit scherne, and TIF'S accounts will be audiled al Ihe end of the year. We are expecting further companies to also purchase ¢redils now that the system ha$ been demonslr8ied in pr8di¢e by Fairphon& and the FCA. Cre&ting an enabling anvimnment To achieve a tangible impact on the ground, the Fair CobaK Aliance also has the following workstreams dedicated to creating the right environment to ensu the success and uptake of its programme. Governance and mernber en9agemenl.. In Ihe first quarter of the year. the Alliance developed the 2026 strategy. clearly articulating four core objectives to include 8 mine site support focus to enable safe 8nd fair artlsan81 production, child labour remediatitsn and prevention and ctsmmunity Èconomic resilience, with a focus tsn saving groups and economic diversity. To reach the objectives, value chain participation through an InCaSed and engaged membership will be priontised to enable the long-tem) suslainabilty of our interventions. The FCA se¢taat continued ¢0 seek the support of Ihe supply chain integration task forTr and the cornrnunication5 taskfor¢e to rneel several goals. The suppty ch8in task force wa5 created to gamer support lo enable the FCA'5 goal of facilitating tnarket acceptance for fair cobalt. with last yearf5 focus being on the development and rollout of the responsible cobam credrts which oJlminated wrth the pilot rollout in collaboration wrth Fairphone. The cornrnunications (askforce. meebng every six weeks. was created lo get support to boost the cobatt supp chain aWanesS of the sector and our work. refine Ihe Fair Cobalt AJliancE messaging. and encourage broader stakeholder engagetnent in the sector and membei rerxuttment.
THE IMPACT FACILITY TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 The FCA Secretariat continued lo seek the support of Ihe supply chain integration task force and the communications taskforce to meet several goals. The suppty chatn task force was created to gamer support lo enable the FCA'5 goal of facilitating market acceptance for tsir cob8tt. with 185t yearfs focus being on the development and rollout of the resptsnsible cobah credits which CAJlminaied vnth the pik)t folltsut in collaboration with Fairphone. The communications taskforce, meebng every six weeks. was ated lo get support to boost the cobatt supp chain awareness ol the sector and our work, refine Ihe Fair Cobalt Allianc£ messaging. and encourage broader stakeholder eng8gement in the sector and member recwrtmenl. Forging strategic partnerships & govemment relations". Rèco9nising thè complexity of the artisanal cobalt sector, the FCA engages in collaboration wbth drfrent key aclors. National Stakeholders.. The FCA participated in a session organised by the Minislry ol Mines, where the DR Congo govemrnent's cornprehensive five-year plan for ¢he minin9 sector was presented. This participation enabled the ali9nmenl of the FCA str8legy wlh those outlined by the governmeni. parti¢ularty fo¢u$in9 on the le9ali$ats'on of arb$an81 mine srtes. A¢knowdedged as an expert in the $e¢tor, the FCA ¢hose lo arti¢ulat¥ the essential requisrte$ for a saf¢ and responsible artisanal mine during an Entreprise Générale de Cobam IEGCI workshop. Notabty. the FCA facilitated a working group wlhin Ihe Cellule Présidentielle de Veille Stralégique ICPVSI. specifically addressing the question of the e81 cooper81ive model for Ihe professionalisation of artlsanal rnining. The FCA also attended a workshop to foster the coeyistence behveen largfrscale mining and art15an81 and small- s¢ale mining organissd by CPVS. To ¢on¢relise our engagement wilh this in$litution, th¢ FCA has also engaged in a preliminary Memorandum ol Und&r$tanding IMOVI with the CPVS. The FCA has forged a partnership vthh the Cellule Technique de Coordinat et de Planification Minsère ICTCPMI, culminating in the presentation of a preliminary partnership agreement lo the Minister of Mines. Inlem81ional Stskeholders.. The FCA continues lo enga9e other intem8lional slakehdders wothin9 in the DR Congo. in¢luding USAID, the European Unlon, Cobalt for Development IC4DI. the Belgian Embassy, Ihe Swedish Embassy, the European Commission. RMI, the Pans Peace Forum. and the Organisation lor Economic Co-operation and Development IOECDI. The FCA is commrtted lo aligning areas of collaboration with stakeholders across our membership rather than duplicating efforts for more sustainable sector development. Delegation Visit.. In September. Ihtr FCA hosted rts second 8nnual deleg81ion visit to Kolwezi, welcoming 8 diverse group of participants from several ofganisations, induding FCA members. pioje¢t partnèrs, embassy representatives, and govemment officials from the DR Congo. The four-day visrt provided stakeholders with an invaluable opportunrty to engage ¢Jirectty vthh mining communities, observe on4he-ground operations, and discuss strategies for sustainable development. Central lo the visit was the exploration of several key proiecls spearheade(J by Ihe FCA including a visit to the Kamilornbe mine site run by CMDS lo gain insights inlo the intricacies ofASM pr8clices, which included a lour of the CMDS-funded hosprtal visit. The delegation also partiupated in a tound tabk on child labour remedk4tson led by The cent for Child Rights and Business, presenting The Hub for CLR. The participants also got an opportunity to visit the Mutanda mining sile, an industrial mining operation operated by Glencore located outside K0eZi. providing valvable insights into large-scale mining operations, allowing for cornparisons with arts's8nal rnining pradices and I81[tating di5CUssions on the potential synergies and challenges associated with different rnining models. Outreach, fundraising and recruitment". To help expand Ihe ojrrent Allian footprint to additional sites, the FCA updated its fundraising strategy in 2023. The slrategy's focus is solidfying FCA'S position as a strategic partner in the DR Congo. aligning with govemment commitmenls for •n-untry value addits'on through local battery manufacturing.
THE IMPACT FACILITY TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Fundraising.. The Impact Facility team. in collaboration wrth Trust Merchant Bank ITMBI. secured funding from USAID'S Jet Mineral Challenge for projecl funding of USD 226.909. This project. commencing in 2024. aims lo address corrupb'on in the trade and taxabon of the artisanal cobatt mining sector. The project will introduce TMB'S Pepele Mobile payment platform to Ihe artisanal cobatt trade, In(£ntivizing the adoption of dwJrtal payments and reducing reliance on commissions from third-paity tradets. The FCA dedicated a lol of effort lo convening consortiums to make applications for funding from the European Partnership lor Responsible Minerals IEPRMI and the USAID lunding opportunity made available through the Africa Trade and Investment IATII. Funding of 320,000 Eur05 h8s recenuy been 8pproved by the EPRM and the project will commence in 2024. This is an 18-monlh project to develop a replicable and sc818ble miner81 credit system for application in arts"sanal Cobalt Credit$. The ATI project, a USD 2 million projecl, il approved. wll enable ihe piloting of a professionalvzed and responsible artisanal cobalt mine site by the EGC. These sources ol hjnds will enable Ihe scaling of the FCA'S work in the region. Event partl¢lP81ion.' The FCA Continues to activety engage in vaiigu$ se¢tor events lo re¢ruit new members, ¢onn&¢t with kay industry stak8holder$, securè ouf position as an industry expèrt and secure addits'onal financing. Thesè include Mining Indaba event in Cape Town, South Africa, in February Ihe most significant mining conference in Africa. The team also participated in the DRC Mining Week conlerence in Lubumbashi, DR Congo, the biggest mining sector conference in the DRC, where the FCA was a cobalt sponsor. Other key events indude the BMZ'S IGemian Federal Ministry for Economic Cooperabon and Developrnentl High.Level Forum in Berfin. Evolve.. Assenfs supply chain sustsinabilty conference, Mines and Money. The Global Sustainable Developrnenl Congress in Saudi Arabia, Paris Peace Forum, Cobalt Congres$ in l$tanbul. and the OECO Responsible Min&ral$ Forum in Pads, Katanga Business Meèting IKBMI in K021 and Lubumbashi and at thè DRC-Alri¢a Battery Met81$ Forum in Kinshasa, Finance Against Slavery & Trafficking IFASTI forum in The Nelherfands and the RMI Annual Conference in USA. represented by drfferent members of the FCA in-country and intemat#)nal team. Art15anal Cobalt Mining Photo Exhibition.. To change the suppty chain perception of artisanal and small-scale rnining. historically lainled neg81ivety by rnainslream media. the FCA, through the photogr8phy of 08vid Sturme5-Verbeek. the Director ol Business Innovation and Partnerships. sel out lo display images 81 several events depi¢ling the sector and the people that ¢Jepend on rt as a livelihood source, as a people proud of their work and who use thelr hardoarned money to support their lamilies. send Iheir children lo school and build 8 firture for themsefves. These irnages have been featured in fve cobam sector relevant events around the worfd. rn0 specifically al the Cobatt Congress in May in Istanbul. Ihe DRC Mining Week al Ihe Belgium Embassy in June. IFA Event in Seplernber in Berlin, Germany. the London Meial Week in October, and Ihe RMI Conferen¢& in C81iftsmia, USA in Odober. Monitoring & Evaluation In 2023, the Fair Cobatt Alliance developed and tested a global M&E Framewo, wth the support of sustainability consuttants Levin Sources. In March 2023. the FCA conducted a comprehensive baseline survey consisting of 210 participants. disaggregated by the groups of cornmvnty members in Kapata. localed next to the Kamil¢ynbe mine site area, 96 underground workers, 95 Kapala cornmunity rnembers. and 19 women wa5her5. The study yiekled a fim base tsf knoedge upon which the Alliance has developed one of rts most central tools". the FCA M&E Measurement Plan. The Measurement Plan oullines all the key indicators at the core of the FCAS operations, specifying measurable and tsmety assessment strategies for each disbndive output, outcome and impact. The Lake vtorIa Gold Programme The Impact Facility'5 Lake Victoria Gold Progfamme supports tiSana1 and salscale Gold rnines to impiove productivity and the responsible produclion of gold. Activities in 2023 took place almost exclusivety in Kenya and Tanzania to". Support rnines to access equipment through a lease-twurchase programme Provide technical support to mines to improve their environmental. soaal and governance IESGI perf0rrnan against TIF'S Impacl Escalator Increase downstream demand and support for responsible attisanalty mined gold
THE IMPACT FACILITY TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Our work in Kenya was predominanty supported ty the GenEM Foundats'on and European Partnership for Responsible Minerals. with investment finance provided by a private individual. Our work in Tanzania 18 also supported by the GenEM Foundation. as well as wrlh lunding from the Netherfand's Enterprise Agency. In Kenya, our equipment access work is impkmented through a lease-twurchase programme. By the end 012023, we had active leases wrth six mines, benefitb'ng 190 wthers 180 women). The total value of leases made was approximatety $136.000, with c. $60.000 alrea(Jy repaid against these contracts. The lease programme had one default and one contract cancellation by a Mine. lIe these event5 posed a challenge to the programme. addressing these during the earty stages of the est8blishment of the programme has allowed TIF to 183m v8lu8ble lessons which c8n help reduce the instance ol suth inridenls in ftjture. The lease programme has moved Irom pilol to prool-of-concept and is now scaling, wth an expected expansion into Tanzania in earty 2024 through loans. In Kenya, the six mines active in our portfolio by the end of 2023 reported an overall increase in average monthty production of approximatety 50%. This has been accompanied by improvements in ESG performance at ery mine site.. for example. ty-third$ of mines have made significant health and salety improvemenls,. more than half of the gold production we support Is processed using alternative le¢hnique$ lo mercury., and re¢ord-keeping has improved aiyoss all min&s. In Tanzania, in relation lo our equipment access work. efforts were locused on securing financing and designing a loan programme which builds on our Kenya lease-lo-purchase work.. aligns wilh domestic regulatory requirements.. and meets the needs ol artisanal and smalkscale gold mines. This work was cornpleted at the end 012023, wrth a contract in late.slage discU10n which is expecled lo fund this programme from 2024-2025. Our le¢hnical support lo mines Continued in 2023. In Tanzania, this was don& in close partnership with Solid8rid8d, and covèred intervèntions from financing sampling and tèsting ol or• samples to infom improved mine development, through to training on Operational HeaNh and Safety. Woth was also undertaken to design and test an improved mercury retort to assist with uptake by gold processors. Several user concerns with the deylgn were identified and further improvements will be made in 2024. In Kenya, sirnilar lechni¢al a$si$l•n¢e was provided lo mintr$. induding tr8ining tsn geology, bl8sbngldrilling. venlil8lion, and ground Ntrol. Additionalty. mine$ already benefibn9 from the le8se-lo-pur¢ha$tr programm& were also supporte¢J to implement Continuous Improvement Plans. which Identrfy specific ESG Improvements to be made alongside leases - as noted above, al mines made al least one improvement in their ESG perfomiance during the year. Further improvement5 were made to our mine 8ssessmenl and engagement tools as we leamed from the early stages of implemenling the lease-t¢)-purchase pro9ramme. This indude5 replacing Continuous lrnprovement Plans ICIP$l with Investrnenl Partnership Plan$ IIPPS). which are expe¢ted to support mines more effectivety in rnaking ESG improvements by focusing on a smaller number of priorities and tying improvements to potential fijrther stages of financing. Under the downslrearn component of our work. work conlinued on the design ol Responsible Mineral Credits for gold. This was paused while Responsible Cobam Credits were pilote(l under our FCA progr8mme, but wil now be picked up in 2024. During the year, we also ceIVed funding from the Fashion Pact, which enabled TIF to build a minimum viable product lor a digital plafform to host TIF'S mine assessment and investment processes. This platform wll be essential to support and improve TIF'S processes as the gold programme expands. It wll also provide greater transparency and access lo data for both mines and polential ftjnderslinvestors. Further work is planned to expand the functionalty of the pl8tforrn in 2024. enabling rt to be accessed by extemal users. TIF also received a donation from BRUNA to supwrt efforts to promote mercury-free gold processlng at the cluster of mines located at Osiri Matanda, in Migori County and to promte women's involvement and leadership in mining through an internship at TIF. This work will commence in earty 2024. The Impact Facility's gold programme team have also been present at several conferences 8cr0$5 2023, including Tanzania Mining and Investment Forurn," Kenya Mining Week", Kenya's Haki Madini conference". and the Rwanda Mining Week.
THE IMPACT FACILITY TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Financial Review The financi81 review covers the annual period of the group lo 31 December 2023. The total income for the group was £1,460.581 (Dec 2022". £1,378.7171, whith includes £1,434,928 IDec 2()22.. £1,337,647) ineome from education actNrties, and £25,653 (Dec 2022." £41,070) income from equipment leasing. Total expenditure for the group for the year was £l.521.867 (Dec 2022.. £1.528.9611, which indudes costs of education activities of £1.477,457 (Dec 2022.. £1.481.5231 and expenditure on equipment leasing of £44.410 IDec 2022.. £47,438). The net expenditure for the year wa5 £76.321 IDec 2022.. £129.25518fter 8 Ios8 on foreign exch8nge of £15,035 (Dec 2022.. £20.989 g8inl. At the balance sheet date, the total lunds for the group were £117,720 IDec 2022." £194,041), which were made up 01 general unrestricted funds totalling £88,711 in dekit (Dec 2022.. £47,697 in defficitl and restricted funds totalling £206.341 IDec 2022.. £241.7381. Reserves policy Our reserves policy aims to ensu Ouf is protec1 from Ihe risk of disruption al short noti du lo a18¢k of funds, whilst at the same time ensuring we do not fetain income lor longer than required. Policy owner.. Chief Finance Officer Audience., All Le9i$lation." and regulation Charity Commission guiaon¢¥ 'Ch•ritses ServeS.. building $111en¢4. ICC191 Approv¥d by." Board ol Trustees Last update." Oct 2023 Next review.. Oct 2024 1 This policy sets out our need for Ihe finantyal reseryes. 2 Reserves Our reseNes policy aims lo ensure our work is prole¢ted from the risk of disruption al short noli¢e due to a lack of funds, whilst at the same time ensuring we do not retain income for longer than requlred. The trustees have determined that the Chanty needs unrestricted reserves lo provide a¢Jequate working caprtal to protect against unbudgeted costs and ensure the delivery of our programmes. It is deterniined that The Impact Facility should hold sufficient accumulated unrestricted funds lo cover unbudgeted fluctuations in income andlor expenditure, equivalent to three months of budgeted resource. The actual level ol unrestricted reserves is less than our pol'cy. The trustees a budgelin9 lor a more bal8n¢ed unresiricted reseryes in 2024 and pl8n to meet our poliry by 2025. 3 Financial impact of risk 3.1 To ensu that there is no signfficant disruplicrfi to our charitable activities, holding appropriate reserves will enable the organisation to Spond to any unforeseen reducb'on in income (for example when income does not reach expected leve151.' or additional expenditure Ilor example rf projects overrun. or unplanned events oCrI. 3.2 A detailed review of the finanaal risks we face is m0nrtod on an ongoing basis, and our assessments on the possible financial impact of those nsks have been incorKxJrated into Ihe reserves requirement we have calculated. 4 Working capital 4.1 Free reserves include both cash. which are immediatety 8v8il3ble. 8nd other working c8pitsl bances. Working capital represents a significant element ol our ieserves. but not all of these balances are immediatety 8vai18ble. For example, rt takes on average 55 days to collect cash from trade deblots. 5 Comrnitments and long-term plans 5.1 Commitrnenls and long-lemi plans not already rellecled in plans and budgets a also evaluated on an ongoing basis. We do not believe there is any need to make further provision for such rtems.
THE IMPACT FACILITY TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 6 Reserves 6.1 Based on the 8bove. it is determined that The Imp8cI F8ciIty Should hold sufficient aCmUlated unreslricled funds to cover unbudgeted Iluctuatsons in in¢tsme andlor expenditure. equivalent to three months tsf restsuiees at budgeted levels. 7 Responsibilities 7.1 The Board of Trustees are responsible for ensuring that we manage our resources responsibly. that we act in the best interests of the or9anisation and the people we serve. The Board has responsibility for approving and monitoring the implementatstsn ol this policy. 7.2 The Senior Management Team is responsible for providing clear and focused leadership ol the organisation, and to ensure our financial slabilty. 7.3 The Chief Finance Officer 15 the policy owner 8nd 15 respon5ibl# for managing our rè5ervtts, ensuring thi5 policy is reviewed in lints with cory)orat& wuirem&nl$. 8 Laws and regulats'ons 8.1 As a registered charity. we are reqUId to meet relevant legal and regulatory requirements. have a duty to apply charitable funds within a reasonable period of time for the benefft of the people we serve. 8.2 This policy sets out the framework we have in pla¢& lo confimi the l&vel of re$erve$ we have d&l&mine<l Is appropriate lor our organi$alion an¢J ¢Jraw$ upon gyi¢Jan¢e such a$ the Charity Commi$sion'$ CC19. 9 Monitoring and compliance 9.1 Reserves levels and forecasts wll be mnitored as part of monthty finan¢i81 reporting. wrth regular reports provided lo the Board ol Trustee$ and Ihe Senior Management Team. FLrtur• Plan8 In 2024 The Impad Facjlity plans to continue and grow its work wilh gold and wbalt mining communrties in East and Central Africa. In particular we seek to expand our innovative gold finanang programme in Tanzania and lo grow the membership. and lurther exlemal lunding for Ihe Fair Cobatt Alliance, and thereby increase the impact on the ground. The Trustees have initiated the process of developing a strategic plan for Ihe organisation in 2023, and thls Is planned to be finalised and approved in 2024 to provide guidance and diredion for the charity for the coming years. The Trustees have assessed Ihe major risks to whic* the charty is exposed and are satisffied that systems are in place lo miligale exposure to the major risks. Structur•. Govtrnane• and Manag•m•nt The trustees who have served the chanty during the year lo December 2023 are.. Ms M Lernpers Ms C Neef5 Mr S Lowe DrA Steward Carter Ms S Hope Ms B Vissers Mr P Singo IResigned 30 June 2024 IResigned 15 February 20231 IAppointed 1 June 20231 IAppointed 15 Febnjary 20231 IResigned 22 February 20231
THE IMPACT FACILITY TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Structure.. The Irnpact Farility has been estsblished as a Charifable Incorporated Organisation ICIOI registered under the laws of En9land and Wale5. The Impact FaThlty's Registered Office is located in Avening P8rk. Tetbury. Gloucestershire England. The Impact Facility has established a fulty owned trading subsidiary. Impact Capital IICLI. registered as a company limited by shares in the UK. This trading subsidiary is able lo receive third paty investments and to lacililale investrnents into mining communities. The Impact Facility legal 8dvisors are Virginia Henley of HalSOn Clark Rii*erbys Limrted. Oliver Hunt of the Charity & Social Enterprise Department of 8ates Wells Braithwarte. Oliver Rothman and Dom Rothbarth of MorrL%on and Foerster and HCR Hewitsons. Bespoke Accountants provides accounting seNices. The Impact Facility holds its bank account with Lloyds bank. The finanual year of The Impacl Faulity Is 1st January to 31st December. Governance.. The Impact Facilty is governed by the Impad Farylty Constitution. In line with UK Govemmtrnt wuiremttnt5 for CIOS The Impact Facility has a ¢on$tiluts'on induding provi5i9n$ tg ensure The Impa¢t Fa¢ilty ¢omplie$ with the UK Chariti8s 2011 Act and thè General Regulations. In line with UK govèmment gvidèlines for CIO'S Thè Impact Facility follows Its Charitable purpose. This indudes the commitment lo promote sustainable development defined as "development which meets the needs ol the presenl wilhoul compromising the a'lity of future generations to meet their own needs Management., The Impa¢t Facility Tru$l$es have appointed a CEO to ovefs&e lh& day-t&day management of th¥ CIO. This CEO Is accountable to the Trustèes lor the delivery of the charity's miss through rts pfogramme ssrvices together with fundraising, financial leadership and managing the staff. The CEO Is supported by a Senior Managenwnt team, consisting ol the Chief Financial Officer and the Director of InnovalTr and Partnerships. Statement ol trustees. responslbllllles The trustees are responsible for preparing the Tru$letr8' Report and the fin8ntyal $18ltrmenl$ in a¢¢ordanctr wlh applicable law end Unrted Kingaom Ac¢ounbng Standards IUnil¢d Kingdom Genefally Accepted Ac¢ounlin9 Pracllcel. The law applicable lo charities in England and Wales requires the trustees to prepare financAal statements for each financial year which give a true and fair view of the stale of affairs ol the group and of the incoming resources and application of resources ol the group for that peiiod. In preparing thèse financial statÈment$, the trusleès are required lo.. select suitable accounting policies and then appty them consislenty", • observe the methods and prinaples In the Chanties SORP.. • make judgements and estimates that are reasonable and prudent; state whether applicable ac¢ounling standards have been followe(l. subject to any material departures disclosed and explained in the financial 5tatements.' and prepare the financial stalements on the 90ing concem basis unless it is inappropriale lo presurne th81 the charity wll continue in operatson. The trustees are responsible for keeping sufficien( accounting records that disdose with reasonable accuracy at any time the finanaal position of the group and enable them to ensure that Ihe finanaal statements comply with the Charities Act 2011. the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible ft)r safeguarding the assets of the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularitie$. The trustees, report was approved by the Board ofTruslees. Mr S Lowe 10-
THE IMPACT FACILITY TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Trustee Date.. 11 Dec 2024 11
THE IMPACT FACILITY INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE IMPACT FACILITY Opinion We have audrted the financial statements of The Impact Faulity lthe'charrty'l and its subsidiary Ithe'group'l for the year ended 31 December 2023 which comprise the group stalement of finanoal activth"es, the charity statement of financial acts'vits'es. the group balance sheel. the charity balance sheet. the group statement of cash flows and the notes to the financial statements, including significanl accounting poliaes. The financial reporting framework that has been applied in their preparation is applicable law and Uniled 'ngdoM Accounting Standards. including Financial Reporting Standard 102 The FinanGial R&porting Slandard applicabl8 Ihe UK and Republic of Irsland Iunited Kingdom Gènèralty Acceptèd Ae£ounting Pradicel. In our opinion, the financial statements.. give a Irve and fair view of the state of the group's and of the parent charty's affairs as * 31 December 2023 and of rts incoming rèsour¢e$ and appliration tsf re$our¢ès, for the year ihèn ended., have been properfy prepared in accordance wth Vnited Kingdom Generally Accepted Accounting PraCts... and have been prepared In accordance wrth the requirements of the CharrtiesAct 2011. 8a818 for oplnlon We conducted our aufjlt In a¢¢ordan¢e wilh Intemalional Standafd$ on Auditin9 IUKI IISAS IUKII and appll¢abl$ law. Our résponsibilities under those standards are further described in the Audilorts msponsibilili&s for the &udit ol the finenci81 statements section ol our reporl. We are independenl ol the group in accordance with the ethical requirements that a relevant lo our audit of the finanual statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our olher eth1 responsibililie5 in accordance wrth these requirements. We believe that the audit evidence we have obiained is suffirient and 8ppropri8te to provide a basis for our opinion. Con¢lu¥lon$ r*l•tlng io golng ¢on¢em In auditing the financial statements. we have concluded thal the trustees, use of the going concem basis of accounting in the preparation of Ihe financial slatemenls is appropiiate. 8ased on the work we have perfomied. we have not identrfied any material uncertaSnties relatlng to events or conditions that, individualty or collectNety. may casl signthcanl doubt on the group's abilty to continue as a golng concern for a penod of at least Iwefve months from when the finanaal statements 8re authorised for issue. Our responsibilities and the responsibilities of the tnjstees wth respect to going concem a described in the relevant sections ol this report. Othèr Infomiatoon The other information comprises ihe information included in the annual report other than the finarcial statements and our auditorfs report thereon. The tru51ees are responsible lor Ihe other inforniatson contained within the annual report. Our opinion on the financial statements does not cover Ihe other inft)rm8tion 8nd we do nol express any ft)rm of assurance conclusion thereon. Our responsibility Is to lead the other infortnats'on and, in doing so, consider whether the other infom)ation is materialty inconsistenl wtth Ihe financial statements or our knOedge obtaine¢J in the course of the au¢Jit, or otttermse appears to be malerially misstated. If we idents.fy such material Inconsistencies or apparent material misstaternenls. we are qUired to deterniine whether this gives rise to a materHI misstatement in the financial slalemenls themselves. If. based on the work we have perfomed. we conclude Ihat Ihere is a material misslatemenl of this other information. we are required to report thal fact. We have nothing to rèport in this regard. Matters on whlch we ar• rnqulrnd to report by expIlOn We have nothing to report in respect of the following matters in relation to vthith lh8 Charities (Account5 and Reports) Regulations 2008 requi us to ptsrt to you rf, in oui opinion". the information given in the financial statements is Inc$1stent in any material respect with the trustees, report.. or sufficient accounting records have not been kept," or the financial statements are not in 8greement vrith the accounb'ng iecords.. or we have not received all the information and explanations we require for our audit. 12-
THE IMPACT FACILITY INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE IMPACT FACILITY Responsibilities of trustees As explained more fully in the statement of trustees, responsibilib"es, the trustees are responsible for tne pparatIOn of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Iruslees determine is necessary to enable Ihe preparation of finanual statements that are free from material misslalement. whether due to fraud or error. In preparing the financial stalemenls. the trustees are responsible for assessing the group's ability to contsnue as a going concem. di5dosing. as applicable. matters reLyted to going concern and using the going concem basis of accountsng unless the trustees either intend to cease operation5, or havè no r68listie alternative but to do so. Audltorf8 responslbllltles forthe audlt olthe Ilnanclal Statements We have been appointed as auditor under seclion 144 of Ihe Chaiilies Act 2011 and report in a¢¢ordan¢e with the Act and relevant regulations madts or having trllect Ihtsreunder. Our objectives are to obtain reasonable assurance about whelhèr the finanaal statements as a whole are free from material misslalement. whether due to fraud or error. and to issue an auditorfs report that indudes our opinion. Reasonable assuran is a high level ol assurance but is not a guarantee that an audit conducted in accordance with ISAS IUKI will 8fv4ays detect a material misstatement when it exists. Mis5tstements can arise frorn fraud or error and are considered material if. individualty or in the aggregaie. they could re850n8bly be expected lo influence the economic deGisions of users tsken on Ihe basis of ¢he5e finanryal slatemenls. Irregularities, including fraud, are instances ol non-compliance wilh laws and fegulatlons. We deslgn procedures In line with our responsibilities, outlined above. lo delect material misslalements in respect of irregularities. including fraud. The extent to which our procedures are capable of detecting irregularities. induding fraud, is detailed below. 1. At the planning sta9e of the audit we gain an understanding of the laws and regulations which app to the Charity and how Ihe managemenl seek lo ¢ompty with those laws regulations. This helps us Its plan appropriate risk assessments. 2. During the audrt we locused on relevant risk areas and rewew the cOmpln wth the18ws and regulats'ons by rnaking relevanl enquiries and undertaking corroboratKJn. for example ty VIewIng Board Minutes and other documentation. 3. We ¥$$es$ed the risk of material mi$stslem¢nt in Ihe finonoal $lat&ftwnl$ induding 8$ 8 r*$ult offraud and undartook procedures Including". a. Reviewing the controls set in place by managemenl.. b. Making enquiries of management as to whelher they consider fraud or other irregularity rnay have taken plaTr. or where such opportunty might exist.. c. Challenging management assumptions wilh regard to a¢counD'ng estimates.. and d. Identifying and lesling jtsumal entries. rtIcUlarty those which appear to be unusu41 by tsr naturè. Because of the inherent limrtats.ons of an audrt, the is a risk thal we wll nol detect all Irregulanties, includlng those leading to a material misslalernenl in the finanaal statements or non-compliance wth gulaIl0n. This risk increases the more that compliance wrth a law or gulatIOn is removed from the events and transactions reflected in the finanoial Statements. as we will be less likely to become aware of instances of nOrmplian¢e. The risk is also greater regarding irregularities occurring due to fraud rathei than error, as fraud involv95 intentional conce81men¢, forgery. collusion. omission or misrepresentsth"on. A further descripbon of ovr responsibilAies is available on the Finanaal Reporling Council's website at.. htty)s.'Il www.frc.org.uklauditorsresponsibilities. This description forms part of our auditorfs report. Uso of our r•port Thi5 report 15 made solely to Ihe charity's trustees. as a bo(ty. in a(Lordance wilh section 144 of the Charities Act 2011. OUT audit work ha5 been undertaken so that we rnight Stale to the company s member5 those rrwtters we are required to state to them in an auditorfs reFX)rt and foi no other putpose. To the fvllest extent pemitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work. lor this report. or for the opinions we have fomied. 13-
THE IMPACT FACILITY INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE IMPACT FACILITY Samantha Daniels Isenlor Statutory Auditor) for and on halff of Shaw Gibbs IAudlil Limlt 110ec 2024 Chartered Certified Accountants statutory Audltor 264 Banbury Road Oxford OX2 70Y Shaw Gibbs (Audit) Limited is eligible for appointment as auditor of the group by virtue of ils eligibility for appointment as auditor ol a company under Sec1 1212 01 the Companies Act 2006. 14-
THE IMPACT FACILITY CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEAIBER 2023 Unrestricted Restricted funds funds Totsl Unrestricted Restricted funds funds Total 2023 2023 2023 2022 2022 2022 Notès Income from.. Charitsble a¢tivilies 176,650 1,283.931 1,460.581 133.511 1.245,206 1.378,717 Expèndlturè on.. Charitable activities 205.697 1.316.170 1.521.867 192.981 1.335.980 1.528.961 Net expendlture 129.047) 132,239} 161,286} 159.4701 190.7741 1150,2441 oth•r r$co9nl¥•d galn8 and lossés.. Other gainslllossesl 111,9671 {3,068} 115,0351 21.126 11371 20,989 N•1 mov•meni In fund$ 141,014} 135.307) 176.3211 138,3441 190,9111 1129,2551 R•conelllatlon ol lund•: Fund balances at 1 January 2023 147,697} 241,738 194,041 {9,3531 332,649 323,296 Fund balane•• at 31 O•c•mb•r 2023 188,7111 2C,431 117,720 147.697) 241,738 194,041 Th¥ $tgl¢menl of finan¢i81 a¢tiviti&s in¢lud¢$ al 90in$ and losse$ re¢ogniso0 in lh& y&ar. All in¢om& and oxpondilu derive from continuing activities. 15-
THE IMPACT FACILITY CHARITY STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEAIBER 2023 unSt11¢ted Restricted funds funds Total Unrestricted Restricted funds funds Total 2023 2023 2023 2022 2022 2022 Notès Charitable activities 176,650 1,283.931 1,460,581 133,511 1,245,2L 1.378,717 Charitsble a¢tivilies 205,697 1,310,162 1,515,859 192,981 1,332,999 1,525,980 Nel exp¥ndlture lor the ygarl Net outgolng resource• (29,0471 128.2311 155.2781 159.4701 187,7931 1147,2631 Other recognl¥ed galn¥ ond 1088e• Other gains or losses 111.9871 115.0351 21.128 11371 20,989 Net movem•nt In fund• 141.0141 129.2991 170.3131 138.3441 190,9111 1126,2741 Fund balances at 1 January 2023 147,6971 244,719 197,022 {9,3531 332,649 323,296 Fund balane•• at 31 O•c•mb•r 2023 188,7111 215.420 126.709 147.69n 244,719 197,022 Th¥ $tgl¢menl of finan¢i81 a¢tiviti&s in¢lud¢$ al 90in$ and losse$ re¢ogniso0 in lh& y&ar. All in¢om& and oxpondilu derive from continuing activities. 16-
THE IMPACT FACILITY CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2022 Notes Flxed assets T8ngible assets 13 12.084 22,427 Current ass•ts Debtors Cash at bank and in hand 17 294.225 285.684 366.754 245.229 579.909 611,983 Cr•dltors'. amotsnts lalllng du• vAthln onè yaar 19 389,162 380.790 Net current assets 190,747 231,193 Total a88et8 le88 currnnt IlabllSlles 202.831 253,820 Credltor¥'. arnounts falllng due after more than one year 21 (85,1111 159,5791 117.720 194,041 Th? lunds ol the group Restricted income funds Unreslri¢led lunds 24 22 206.431 188.7111 241,738 147,6971 117.720 194,041 11 Dec 2024 Th$ financial stslemenls were approv1 by the Iru$lees M ......................... Mr S Lowe Tru$ts• 17-
THE IMPACT FACILITY CHARITY BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2022 Notes Flx•d assèts Tangible assets Investments 13 14 12.084 22.427 12,085 22,428 Currgnl a$$gts Debtors Cash at bank and in hana 294.225 285,584 366.755 245,208 579.809 611,963 Credltors.. arnounts folllng due thln ontr yoar 20 1465.1851 1437,3691 Net ¢urr¥nt 8$$8ts 114,624 174,594 Total a8S•t8 1•88 eurmnt Ilabllltl•• cdItors.. arnounts falllng du• aftgr more than one year 126,709 197,022 21 Incom• lund• Restricted lund$ Unrestricted funds 25 23 215.420 188.7111 244,719 147,6971 128.709 197,022 11 Dec 2024 The financial statemènts W8re approvèd by the Trustee$ on ......................... Mr S Lowe Trust•• 18-
THE IMPACT FACILITY CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Note$ Ca8h flows from opèratlng aetlvltl•8 Cash generated fromllabsorbed by) operations 31 40.845 1190.4311 Invèstlng actlvltlès Purchase of tsngible fixed assets Proceeds froml (payment on loans receivable 1848) 115.9821 458 6.750 Net cash used In Investlng ac¥011 13901 19,2321 Net ca•h u•ed In financlng actlvltleB N?1 In¢rea8elldecrea¥el In c•ih and ca•h gqylvalenl¥ 40,455 1199,6631 Cash and cash equivalents at beginning of year 245,229 444,892 Cash and ea8h •qulval•nts at •nd of y•ar 285.684 245,229 19-
THE IMPACT FACILITY CHARITY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Note$ Ca8h flows from opèratlng aetlvltl•8 Cash generated fromllabsorbed by) operations 32 40.767 1190.4511 Invèstlng actlvltlès Purchase of tsngible fixed assets Proceeds froml (payment on loans receivable 1848) 115.9831 457 6.750 Net cash used In Investlng ac¥011 (3911 19,2331 Net ca•h u•ed In financlng actlvltleB N?1 In¢rea8elldecrea¥el In c•ih and ca•h gqylvalenl¥ 40.376 1199,6841 Cash and cash equivalents at beginning of year 245,208 444,892 Cash and ea8h •qulval•nts at •nd of y•ar 285,$84 245,208 -20-
THE IMPACT FACILITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies Charity inforrnation The Impact Facilrty is a chantable incorporated organisation registered in England and Wales. The registered office is Avening Park. West End. Avening. Tetbury. GL8 8NE. 1.1 Reporting period The Trustees previousty elecled lo change the reporb.ng date to 31 December to align with fellow group companies. As a resutt the current reporting period is lor the 12 monlhs from 1 January 2023 to 310ecember 2023. which is not directy comparable with the comparative 9 months ended 31 December 2022. 1.2 Accounting convgntion The financial statements have been prepared in accordance vthh the group's Igoveming documenll. the Charities Act 2011, FRS 102 "The Financial Reporting Standard Jpplicable in the UK and Republic of Ireland" I'FRS 102.1 and the Charibes SORP "Accounts'ng and Reporting by Charities.. Stalernenl ol Re¢ommended Pra¢ti¢e appli¢able to ¢hari¢ps preparing their a¢¢ounts in a¢¢ordan¢e the Financial Reporting Standard appli¢able in the UK and Republi¢ of Ireland IFRS 1021. leffe¢livo 1 January 20191. Th& group is a Public Benefit Entity as dèfinèd by FRS 102. The financial statements have departed from the Charities (Accounls and Reports) Regulations 2008 onty to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice lor charrties apptying FRS 102 rather than the version of the Statement ol Recommended Practice which is relerred to in Ihe RegUlaIn5 but which has since been withdrawn. The fin8ndal statements are prepared kn stèrflng, whfjch Is the lunctlonal ¢urr&ncy of the group. Mon&tsry amounts in these financial statements ar& rounded to the nearest £. The finanaal statements have been prepared under Ihe historical cost convention. The principal accounting policies adopted a set out below. 1.3 Golng concern The financial statements have been prepared on a going concem basis. Cash flow forecasts have been prepared for a period ol al leasl monlhs from the date of approval ol the financial statements. These lorecasls consider and anatyse any risks thal might affect Ihe chanty's sourceS or ability lo continue operations. The forecasts lake into consideralion the challenging economic environment and its potential impa¢t on income and 8xp¥ndilure. We consider it possible to offset any polential income shortfalls vhth a reduction in expendrture. Our reserves policy states that we should hold suffiaent seNe$ to ensure Ihat our work is protected from the risk of disruption at short notice due to a lack of funds. vthilsl at the same lime ensuring that we do not retain income for longer than required. Our unrestricted reserves are curtently in deficrt, but continuing support from TDI Sustainabilty and confidence in our lundraising, wll reduce this defictt and are commrtted tr) rebuilding our reserves to a level that allows us to invest for the luture growth and development of the organisabon. We rnonitor performan, cashllow. and forecasls on a regular basis and manage our finances according to the 8naty5is of thi5 Posltion. The Iruslees have therefore ndude there is a reasonable expectstion that the Charity ha5 adequate resources to conbnue in operation for the foreseeable future. The Charity therefore continuès to 8dopt thè going concem basis in preparing its finan(ial statèments. 1A Charitable funds Unrestricted funds are available for use al the discTei*)n of the trustees in furtherance of their charitable objectives. 21
THE IMPACT FACILITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 A¢coun¢ing policies (Continuedl Restricted funds are subject to speufic conditions by donors or grantors as to how they may be used. The purposes and uses of the restricled lunds are set out in the notes to the finanaal statements. 1.5 Incomè Income is recognised when the group is legalty entrued lo it after any perfomiance conditions have been rnet. the arnount5 can be rneasured reliabty. and it 15 probable that income wll be received. 1.6 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party. it is probable that a transfer of economic beneffts will be required in setllement, and the arnount of the obligation can be rneasured reliabty. Expenditure is ¢18s$thed by a¢tivty. The Costs of eath athivity are made up of the total of dirt ¢osl$ and sh8r&d costs. in¢luding support costs involvèd in undertaking èach activity. Dired costs attributablè to a singlè a¢tivity are allocatèd direclty lo that adivrty. Shared costs which contribute to morè than one acts.vity and support costs which are not attributable to a single activity are appo.One betsveen those aCtivrtS on a basis consistent with the use of $ourCes. Central slaff costs a allocated on the basis of time spent, and depreciation charges a allocated on the portion of the assel's use. Expenditure is included in the SOFA on an a¢¢nJal basis. 1.7 Tanglble Ilxed as8et• Tangible fixed assets ar& initialty ffa$ured at and $ubs¢quentty nwo$ured 81 ¢o$l or valuation, n81 of depreciation and any impairment losses. Deprgcialion is rgcogni$¥d $0 a$ lo vnile off IM or valuation of as1$ l¥$$ their re$idual values over Ihglr useful Ibve$ on the follovn'ng base$'. Computers Motor vehicles 3 years $lr8ighl line 3 years straight line The gain or loss arising on the disposal of an asset is detemined as the difference between the sale proceeds and the carrying value of the assel. and is recognised in the slatement of financial activth'es. 1.8 Impaim•nt of fix as8•t• At each reporting end date. the group reviews the canying arTh)unts of its tangible as5els lo delemiine whether there is any indicalion that those a$5els have suifered an irnpairrnent loss. If any Such indralion èxists, the reu)veiable arllount ol the asset 1$ gstimated in ordei to determin8 the extent of the imp8irm8nt loss lif 8nyl. 1.9 Caah and caah equivalents Cash and cash equivalents include cash in hand. deposils held al call with banks, other short-terrn liquid investments with original malurities of three months or less. and bank overdrafts. Bank overdrafts are shown wrthin borrowings in cvrTent liabilrties.
THE IMPACT FACILITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 A¢coun¢ing policies (Continuedl 1.10 Flnanclal Instruments The group ha5 elected to appty the provisions of Section 11 'Ba5ic Finan81 In5trumenl$' and Section 12 'other Finanaal Instnjments Is5U85' of FRS 102 to all of its finanrial instrument5. Financial instruments are recognised in the grcwjp's balance sheet when Ihe group becomes paty to the contractual provisions of the instrument. Fin8ncial asset8 and li8bilitEs are offset. ¥1h the nel 8rnounl8 psented in the financial statements. when thère is a legally enforceable right to set off Ihe reco9nised amounts and ther& is an intention lo Settle on a nel basis or to realise the asset and seme the liability simuNaneousty. Baslc flnanclal •ssots B8sic financial assets. Whth indude debtors and ¢8sh and bank balances, a inf¢ially measured at transaction price including transaction costs and are subsequentty CArried at amortised ¢o$l using the effective Interest method unless the arrangement constilules a ffinanong transaction, where the transaction Is measured at the present value of the fulure receipts discounted at a market rate of interest. Finanaal assets classified as receivable within one yeai ale not amortised. Basic financial liobillties Basic financial liabilities. induding credrtors and bank loans are inilialty recognised at transaction price unless the arrangement constilules a financing transaction. where the debt instrument is measured al the psent value ol the future payments discounted al a market rate ol intwesl. FinancAal liabilities classified as payable wrthin one year are not amortised. Debt Inslwm&nls are subsequ&ntty ¢arried al amorti$d cost. usin9 the ¥ff¢tiv* Interest rale m¥¢hod. Trade credltors are obligations to pay for goods or seThices that have be8n acquired in the ordlnary course of operations from suppliers. Amounts payable are classified as current liabililies il payment is due within one year or less. If not. they are presented as nonrycVrnt liabilibes. Trade creditors are recognised iniually at transaction pri¢e and svb5equentty measured at amortised cost using the effeclNe interesl rnethod. Der•¢ognition of finan¢i•l li4bilities Financial liabilrties are derecognised vthen the group's contractual obligations expire or are discharged or cancelled. 1.11 Ernployee benellts The cost of any unused holiday entrtlement is recognised in the period in which the employee's ser¥S are received. Terrnin81ion benerrts are reco9nised immeiJi8lety as an expense when the gfoup is demonslr8bty wmmitted lo temiinate the employment of an employee or to provide teminab.on beneffls. 1.12 Retlrement benellts Payments to deffined ¢x)ntribulion retirement benefft 5cheffles are charged as an expense as they fall due. 1.13 Leases Where the Charity acts as a lessor. amounts due froffl lessees under finance leases are recognised debtors 8t the present value. where material on leases in excess of 2 years duration. of the future rninimum lease payments plu5 any unguaranteed iesidual value Ithe "net investment in the lease") plu5 Incre[ntal costs of negotiating and arranging the lease. Finance income from assets leased under a finance lease is allocated to accounting periods so as to reflect a constant ped rate of bJM on the net investment in the lease. -23-
THE IMPACT FACILITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 A¢coun¢ing policies (Continuedl 1.14 Forelgn exchange Transaction5 in currencies other than pounds sterfing are iecorded at the rate5 of exchange prevailing al the dates of the transactions. At each reporling end date. monetary assets and liabilities that ale denominated in foreign curren&es are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the penod are included in profit or loss. Critical accounting estimates and judgements In the application of the group's 8¢counting poliryes. the trustees are required to make judgements. eslimales and 8ssumplions about the c8rryin9 8mounl of assets and liabilities that are not readity 8PP8ienl trom olhei sources. The estimates and assouateil assumptions are based on historical experience and other factors that are considered to relevant. Aclual fesuhs may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised Whe the revision affects cnly that period. or in the period of the revision and fulure perK)ds where the revision affects both current and fLrture poritsds. Ineom• from charltabl• aetlvltl•8- Charfty and eonsolldat•d unr••ir1¢t R••irl¢t lund8 lund• Totsl Unr••trl¢t•d Re•trlct•d lund8 fund8 Total 2023 2023 2023 2022 2022 2022 Educatlon Con$uttan¢y 176,650 1,258,278 1,434.928 133,511 1,204,136 1.337,647 Equlpment leaslng Consuhancy Lease interest 18,648 7,005 18,648 7,005 36.008 5.062 3e,008 5,062 176,650 1,283.931 1,480,581 133,511 1,245,206 1.378,717 -24-
THE IMPACT FACILITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Expenditure on charitable activities- Consolidated Education Equipment leaslng Total Education Equipment l•asln9 Total 2023 2023 2023 2022 2022 2022 Dlrect costs Stsff costs Depreciation and impairment Consuttancy Travel and sub51Stence Insurance Proje¢t equipment Website and marketing Education and training General expenses Legal expenses Prernises expenses Payroll servic6s 342.402 342.402 1SIJ.340 190,340 11.192 612,360 86,046 7.851 18,505 19.043 630,865 6.500 904.469 82.799 6.500 940,477 82,799 3,111 980 2.689 1,663 40.306 4,210 25.324 17,702 36,008 2,632 2,632 9,859 44.150 3.525 47.587 18,139 29.133 23,470 3,111 9,859 43.916 3,525 42.819 18,139 29.133 23,470 980 2.689 1,663 36.899 4.210 25.324 17.702 234 4.768 3.407 1,222,861 33,990 1,256,851 1.273.575 42.526 1.318,101 Sharn of 8UPPOrt and govemance C1$ note 61 Support 183,541 6.000 Gov&rn8nce 71.055 4,420 189,$41 75.475 178.871 29.077 1.912 3.000 180,783 32,077 1,477,457 44,410 1,521,867 1,481,523 47,438 1,528,961 Analy818 by fund Unreslricted funds Restricted funds 205.697 1,271,760 205.697 44,410 1,316,170 192.981 1,288.542 192.981 1,335,980 47,438 1,477,457 44,410 1,521.867 1,481,523 47.438 1,528,961 -25-
THE IMPACT FACILITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Expenditure on charitable activities- Charity Education Equipment leaslng Total Education Equipment l•asln9 Total 2023 2023 2023 2022 2022 2022 Dlrect costs Stsff costs Depreciation and impairment Consuttancy Travel and sub51Stence Insurance Interest payable Project equipment Website and marketing Education and training General expenses Legal expenses Premises expenses Payroll servi¢e$ 342.402 342.402 1SIJ.340 190,340 11.192 612,360 86,046 7.851 18,505 19.043 630,865 6.500 904.469 82,799 6.500 940,477 82,799 3,111 1,931 980 2,689 1.663 40,306 4.210 25,324 17,702 36,008 2,632 4,412 2,632 4,412 9.859 44.150 3.525 47,587 18.139 29,133 23.470 3,111 1,931 9.859 43,916 3.525 42,819 18.139 29,133 23.470 980 2,689 1.663 36.899 4.210 25.324 17.702 234 4.768 3,407 1,222,861 38,402 1.261.263 1,273.575 44,457 1.316,032 Share of Support and go¥•manc• c08ts180• not• 7> Support 183.541 Governance 71,055 183,541 71,055 178,871 29.077 178,871 29,077 1,477,457 38,402 1,515,859 1,481.523 44.457 1,525,980 Analys15 by fund Unrestricted funds Re8lri¢ted ftJnd$ 20S,697 1.271.760 20S.697 1.310.162 192,981 1.288.542 192,981 1.332.999 38.402 44.457 1,477,457 38,402 1,515,859 1,481,523 44,457 1,525,980 -26-
THE IMPACT FACILITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Support costs allocated to activities- Consolidated 2023 2022 Staff costs Website development IT softw8re and consumables Travel and subsistence Freelance workers Payroll services General expènsès Governance costs 45.953 1,476 170 17.753 1,428 278 5,103 150,247 205 5,769 32,077 123.494 3.341 13.528 77.054 265.016 212.860 Anoly¥•d bgtwgtn.. Education Equipmtrnl leasing 254.596 10,420 207,948 4,912 285,016 212,860 2023 2022 Gov•mane• eosts eomprlu: Audit fees Accountancy Legal and professional 16,500 52,248 8.306 12,400 15,011 4,666 77.054 32.077 -27-
THE IMPACT FACILITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Support costs allocated to activities- Charity 2023 2022 Staff costs Website development IT softw8re and consumables Travel and subsistence Freelance workers Payroll services General expènsès Governance costs 45.953 1,476 170 17.753 1,428 278 5,103 150,247 205 5,769 27,165 123.494 3.341 9.108 71.054 254.596 207.948 Anoly¥•d bgtwgtn.. Education 254.596 207,948 2023 2022 Gov•manc• cost8 compr18•: Audit fees Accountan Leg818nd professional 16.500 46,248 8.306 12,400 15,011 4,666 71,054 32,077 Oth•r g•ln8 ond 108••s Unr••triet•d Rutriet•d funds funds Totsl Unr••triet•d Rè•trlct•d funds funds Totsl 2023 2023 2023 2022 2022 2022 Gainslllossesl upon.. Foreign exchange 11.967 15.035 121.1261 137 120.9891 Trustees During the year no twslees received remuneralion (December 2022.. £Nill for employment. and no trustees received pension benefft or eTnployets national insurance (Decefflber 2022. £Nil for both). There were also no expenses reimbursed (December 2022." £Nill to Itustees. -28-
THE IMPACT FACILITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 10 Taxation The ch8rty is exempl from tsx on income 8nd gains falling wthin $tion 505 01 the Taxes Act 1988 or section 252 of the Taxatiorb of Chargeable GainsAd 1992 to Ihe extent that these a applied to its charitable objects. 11 AudltoVs romun•ratlon Fees payable to the charitys audilor and assoaates.. 2023 2022 For audit serylces Audit of the finanual statements ol the charity 16,500 12,400 12 Employe9¥ - Chorlty ond ¢on¥olld•te The avera9e monthty number of employees during the year was.. 2023 Numbtrr 2022 Number Employees 12 Employment co•t• 2023 2022 Wages and salaries Swal security ¢osts Other pension costs 347,053 38,897 2,405 189,663 12,420 8,010 388,355 208.093 There were no ernployees whose annual remuneration was more than £80,IXIO. -29-
THE IMPACT FACILITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 13 Tangible fixed assets- Charity and consolidated Cofflputer* Alotor vehicles Total Cost At 1 January 2023 Additions 14.591 20.425 35.016 848 At 31 December 2023 15,439 20.425 35,864 Depreclatlon and impainnent At 1 January 2023 Depreci8bon charged in the year 6.725 6.425 12,589 11,191 4,766 Al 31 December 2023 10,630 13,150 23,780 Carrylng amount At 31 December 2023 4,809 7.275 12.084 Al 31 December 2022 8,727 13,700 22,427 14 Flxed as1 Investments - Charlty Unllsted Inve8tment8 Co¥t or valuatlon At 1 January 2023 & 31 December 2023 Carrylng amount Al 31 De¢emb¢r 2023 At 31 December 2022 15 Sub8ldlorl Details of the group's subsidiaries at 31 December 2023 are as follows." Nam• of undertaklng Reglstered Natur• of buslness Class of ¥hare¥ held % Held Direct Indire¢t Impact Caprtal Ltd Avening Pa West End, Avening Tetbury. England. GL8 8NE Fair trading company Ordinary 100.00
THE IMPACT FACILITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 16 Finance lease receivables- Consolidated and charity 2023 2022 Gross 8fnounls receivable under finance leases= Wlthin one year Within iwo and fi¥e years 40.385 28,035 33,907 16,688 68,420 50,595 Present value ol minimum lease payments receivable 68.420 50,595 The present value is reNable as follows.. within one year 40,385 33,907 An•ly¥l¥ of flnonctr1g•8 Finance lease ceivable$ a classrfied based on the amounts that are expected lo be settled with'n the next 12 months and after more than 12 months from the reports'ng date, as follows.. 2023 2022 Current assets 40,38S 33,907 The group ènters Into financlal leasing arrangemènts for mlnin9 equipment. The avèragè tem ol financ& leases entered Into is befv48en 1-2 years. 17 Debtors - Charfty and consolldated 2023 2022 Amounts lalllng du• wlthln on• year: Trade debtors Finance leases receivable Other debtors Prepayments and accrued income 212.900 40,385 10.228 2,677 314.259 33,907 1.899 266,190 350,065 2023 2022 Amounts falllng due after more than onè year. Other debtors 28.035 16.689 Total debtors 294.225 366.754 31
THE IMPACT FACILITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 18 Retirement benefit schemes 2023 2022 Defined contribution scheme$ Charge lo profit or10ss in respect of define(I conthbution schemes 2.405 6,010 The group operates a deffined conlribubon pension &drne for all qualifying employees. The 8ssets of the scheme 8re held separ8lety from those ofthe group in an independenlty 8dminislered fvnd. 19 Cr•dltors.' amounts lalllng du• wbthln on• yèar- Consolldatsd 2023 2022 Other taxation and sodal secunty Trade credrtors Other cdrtOrS Accruals and delerred in¢ome 5,904 121.918 5.060 256.280 1,343 274.862 1,358 103,227 389,162 380,790 20 Credltors.. arnounts f¥lllng due wlthln one yT- Charlty 2023 2022 Other taxation and soeial se¢urity Trade credrtors Amounts owèd to subsidiary undertaking$ Other credrtors Accruals and deferred Income 5,904 119,518 85,024 5,060 249,679 1,343 274,862 59,579 1.358 100,227 465,185 437,369 21 Cr•ditors.' amounts falling du• aft•r morè than onè y•ar- Consolidat•d 2023 2022 Othèr creditors 85,111 59,579
THE IMPACT FACILITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 22 Unrestricted funds - Consolidated The unrestricted fijnds of the tharity comwise the unexpende(I balances of donations and grdnts which are not subject to specific conditions by donors and 9rantots as to how they may be used. These include designated fijnds which have been set aside out of unrestrided funds by the trustees for specific purposes. At 1 January 2023 Incomlng resources Resources expended Galns and losses At31 December 2023 General fijnds 147.69n 176.650 {205.6971 111.9671 188,7111 Pr•vlous perfod: At 1 Aprfl 2022 Incomlng re8ource8 Re8ource8 expended Galng and 1088e8 At31 December 2022 General fvnds 19.3531 133.511 192.981 21.126 147.6971 23 Unrestrlcted funds - Charlty The unrestricted fvnds ol the tharity comprise the unexpended balances of donations and grants which are not subject lo $pe¢ifi¢ Conditions by donors antl 9rantors as to how they may be used. These include dtrsignaled fvnds whi¢h hav& been Sel as¢ out ol Unstrided lynd$ by th& tru$l&e$ for spe¢ifi¢ purpos¥s. At 1 January 2023 Incomlng r•8ourc08 Re80urce8 expended Galn8 and 1088e8 At31 December 2023 General funds 147,697) 176.650 1205,697 111,9671 188,7111 Provlous At 1 Aprll 2022 Ineomlng rnsource8 R•8oure•8 expended G*ln• and 1098e8 At31 Decèmber 2022 General funds 19,3531 133.511 1192.9811 21.126 147.6971
THE IMPACT FACILITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Restricted funds- Consolidated The restricted funds of the charity wrnprise the unexpended balances of donations 8nd gr8nts hekl on twsl subject to specific ¢A)ndttions by donors as to how they may used. At 1 January 2023 Ineomlng r•soure•s R•sourc•s èxpended Galns and logseg At31 Deeember 2023 FCA LME Gold TES 256,811 141.7481 33.044 16,3691 912,598 71.217 274.463 25.653 1962,6551 118.5391 1291.4351 143,5411 206,754 10.930 18,072 127,3251 13.0681 241,738 1,283,931 {1,316,1701 13,0681 206,431 Pr¢vlou$ TI¢'. At 1 Aprfl 2022 In¢omlng r•8oure•8 R•sour¢•* •Xnded G•ln$ ond At31 D8e•mbar 2022 FCA LME Gold TES 308,525 590.917 473.426 130.793 41.070 1651,4941 1515.1741 1121,8731 147.4391 11371 258,811 141.7481 33,044 16,3691 24,124 332,649 1,245,2C6 11,335.9801 11371 241,738 25 Restrfcted funds- Charfty The r8$lri¢ted lunds ol thè ¢harity comprise the unexpended ba18n¢es of donations and grants held on trust subjèct to specific conditions by donors 8$ to how they may be used. At 1 January 2023 Incomlng resources Resources expended Galns and losses At31 December 2023 FCA LME Gold TES 256.811 141,7481 912.598 71.217 274.463 25.653 1962.655 118.539} 1291.435 137.533} 206,754 10,930 16.072 118,3361 {3,3881 13,0681 244,719 1,283.931 {1,310,162} 13,0681 215,420
THE IMPACT FACILITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 25 Restricted funds- Charity (Continuedl Prevlous perfod: At l Aprfl 2022 Incomlng resources Resources expended Galns and losses At31 December 2022 FCA LME Gold TES 308,52S 599.917 473.426 130.793 41.070 1651,4941 1515.1741 1121.873 144,4581 11371 256,811 141,7481 33.044 13,3881 24.124 332,649 1,245.2C6 {1,332,9991 11371 244,719 28 Analy¥l• of net a••ets betWn fund•- Con•olldated Unrestrlcted funds Restrlcted fund8 Total 2023 2023 2023 Fund balan¢&s •t 31 D¥¢•mber 2023 •r• r*pr¢8•nt by: Tangible assets Current assetsllliabilitiesl Long term liabilities 12.084 194,347 12,084 190,747 185,1111 13,6001 185,1111 188.7111 206.431 117,720 Unr•8tricted funds R•8trict•d funds Total 2022 2022 2022 Fund balances at 31 Oecember 2022 are rePSented by: Tangible assets Current assetsllliabilitiesl Long temi liabilities 2,362 9.520 159,5791 20,065 221.673 22,427 231.193 159,5791 147.697 241.738 194,041
THE IMPACT FACILITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 27 Analysis of net assets between funds - Charity Unr•Strfict Rèstrbcted funds funds Total Unrèsttted R•strlcted funds funds Total 2023 2023 2023 2022 2022 2022 Fund balances at 31 December 2023 are represented by.. Tangible assets Investment5 Currant ass6tsllliabilrtiesl 12.1)84 12,084 2,362 20,065 22,427 188,712) 203.336 114,624 150,0601 224,654 174,594 188,711) 215.420 126,709 147,6971 244,719 197,022 28 Operallng l?aM commltmon¢•- Charfty and con8olldated L•*¥etr Lease payments are recognised as an expense in the year of £24,192 (period to 31 December 2022.. £3,410). At the reporting end dale the group had outstanding commitments for future minimum lease payments Uer non.cancellable operating leases, which fall due as follows.. 2023 2022 Within one year BeNveen and five years 7.316 696 22,184 9,853 8,012 32,037
THE IMPACT FACILITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 29 Related party transactions Thls year, the charity has receiveil charitable ath"vib"es income of £3,5 131 December 2022". £104,543) from Fairphone for a joint project. Fairphone is an organisats.on which has a common trustee wrth The Impact Facility. The charity received income of £74.620 131 December 2022.. £33.0301 from TDI Sustainability which is the tr8ding name of 8 company under the conlrol of a Twstee of The Impaot Facility. Included in trade debtors 8t the period end is £13,138131 De¢trmber 2022.. £18,978) owed from TDI Sustainability. Charitable acts'vits'es income of £26,730 131 December 2022.. £34,175) was received from Solidaridad Nederland which is one of The Impact Facility's project partners. Included in other debtors on the chanty b8lanr£ sheet al the period end is £11JO (31 December 2022.. £991 owed by Impact C8pit81 Ltd. During the year TIF was invoiced £151.230 131 December 2022.. £160,962) lor administrative services by TDI Sustainability. a company in which a truslee has a malerial interest. At the balance sheet date TDI is owed £80,099 131 December 2022.. £214.2931 and Ihis is included in trade creditors. and wthin other credlor is £1.253131 December 2022.. £1,253). Included in amounts du8 to subsidlariès at the year ent1 is £85,024 131 Decèmber 2022.. £59,580) owed to Impact Caprtal Ltd. During the year accountancy fee5 01 £Nil131 December 2022.. £1.6801 We paid lo a firm, al which one of tts partners is also a trustee of The Impact Farility. 30 Analy81• ol chang•8 In n•t fvnd8 The group had no material d&bl during the year. 31 C¥¥h generated from operallons- co01[dated 2023 2022 Deficit for ihe year 161.2861 1150.2441 Adjustments for Foreign exchange dffterences Dèpreaatitsn and impaimènt tsftangib ffixèd assèts 115,0361 11.191 20,989 6,500 Movements in working caprtal". Decreasellincre8sel in debtors InCaSe in credrtors IDecre8sel in deferreil incowne 72.071 33,904 127.7921 215,116 1255,0001 Cash 9•nèrat•d fromllabsorb•d by) op•rntions 40,845 1190,4311 -37-
THE IMPACT FACILITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Icontinuedl 32 Cash generated from operatlons- Charlty 2023 2022 Defiut for the year 155,2781 1147,2631 Adjustments for.. Foreign 8xthange differen¢&s Depreciabon and impairment of langible fixed assets 115.0351 11.192 20,989 8,500 Movements in working capitsl.. Decreasellincreasel in debtors In¢rea$ts in creditors IDecreasel in deferred income 72.072 27,816 127,7931 212,116 1255,0001 Ca¥h gonerated fromllab80rt)ed by) operatlon• 40.767 1190.4511